Calculate brenhams current ratio

Assignment Help Financial Accounting
Reference no: EM13490163

Ratio Analysis

The following are Brenham Corporation's 2010 and 2011 balance sheets and income statements.

 

2010

 

2011

Cash

$120,000

 

  $140,000

Accounts Receivable

190,000

 

215,000

Inventory

240,000

 

260,000

Buildings and Equipment

275,000

 

250,000

Intangible Assets

75,000

 

67,500

Total Assets

$900,000

 

   $932,500

 

 

 

 

Accounts Payable

$400,000

 

       $420,000

Bonds Payable (Long-Term)

200,000

 

125,000

Common Stock

30,000

 

30,000

Additional Paid-In Capital

175,000

 

175,000

Retained Earnings

95,000

 

182,500

Total Liabilities and Stockholders' Equity

$900,000

 

       $932,500

 

 

2010

 

2011

Sales

$1,000,000

 

$1,200,000

Cost of Goods Sold

(600,000)

 

(784,000)

Gross Profit

$400,000

 

 $416,000

Advertising Expense

(25,000)

 

(65,000)

Depreciation Expense

(40,000)

 

(51,040)

Office Supplies Expense

(20,000)

 

(22,500)

Interest Expense

(40,000)

 

(30,000)

Provision for Income Tax Expense

(189,000)

 

(159,960)

Net Income

$86,000

 

$87,500

 

(a)    Calculate Brenham's current ratio at Dec 31, 2010 and Dec 31, 2011.

 

(b)   Calculate Brenham's working capital at Dec 31, 2010 and Dec 31, 2011.

 

(c)    Calculate Brenham's debt to equity ratio at Dec 31, 2010 and Dec 31, 2011.

 

Reference no: EM13490163

Questions Cloud

Explain the difference in mass was chemical formula : To identify a diatomic gas (x2), a researcher carried out the following experiment: She weighed an empty 4.8- bulb, then filled it with the gas at 1.40atm and 20.0 degC and weighed it again.
Mama stuffin is a popular food item : Mama's Stuffin' is a popular food item during the fall and winter months, but it is marginal in the spring and summer. Use the following demand forecasts and costs to determine which of the following production planning strategies is best for ..
Explain the atmosphere and found to gain 0.393g in mass : 1.285g sample of Na2SO4 is exposed to the atmosphere and found to gain 0.393g in mass. What is the percent, by mass, of Na2SO4*H2O in the resulting mixture of anhydrous Na2SO4 and the decahydrate
Find which rock will have the greatest speed : Rock 1 is thrown straight down from a tower. Rock 2 is thrown straight up from the same height at the same speed as rock 1. find which rock will have the greatest speed
Calculate brenhams current ratio : Calculate Brenham's debt to equity ratio at Dec 31, 2010 and Dec 31, 2011.
What dollar amount of treasury stock did speedway repurchase : How many shares of common stock were outstanding at year-end, what dollar amount of treasury stock did Speedway hold atyear-end and what dollar amount of treasury stock did Speedway repurchase during the year
At what height above the cannon should the net be placed : A daredevil is shot out of a cannon at 45.0° to the horizontal with an initial speed of 26.0 m/s. At what height above the cannon should the net be placed in order to catch the daredevil
Explain what is the ph of this solution : 0.65 of sodium hydroxide (NaOH) pellets are dissolved in water to make 2.5L of solution. What is the pH of this solution
Prepare the necessary journal entries for the payroll paid : Prepare the necessary journal entries for the payroll paid on Friday, December 27, 2011.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd